Jai Balaji aims 25% growth in sales, to turn debt-free in 15 months – ET Infra


MUMBAI: Specialty steel product maker Jai Balaji Industries sees its revenue growing by at least a fourth in the current financial year helped by higher sales volume of ductile pipes and specialized ferro-alloys, its senior management told ET.

Its revenue of Rs 6,413.80 crore in 2023-24 (Apr-Mar) was at an all-time high, while operating margins stood at 15%. Profitability in the current fiscal is seen in the range of 17-18%.

The Kolkata-based steel maker currently derives a little more than half of its revenue from these two value-added products, and aims to increase this as much as 80% once its capacity expansion is completed in the medium-term.

It currently has the capacity to produce 300,000 tonne of ductile iron pipes, and plans to increase this to 660,000 tonne per year by 2026. Jai Balaji currently has a 10% market share in the domestic market for these pipes, and the company is targeting to take this to 15-20% post the capacity expansion.

Government’s ‘Jal Jeevan Mission’ and ‘Mission Amrut Sarovar’ are leading to an additional demand for ductile pipes, the company said.

The company is also increasing the capacity in its ferro-alloy segment by 14% to 190,000 tonne per annum in the current fiscal, and is targeting a turnover of Rs 800 crore this year, up more than 45 % from the previous year. It gets about 20-25% of its revenue from the ferro-alloy segment, and is planning to increase this to 30-35% by the next year.

Jai Balaji produced 115,000 tonne of ferro alloys, and 242,000 tonne of ductile pipes in the previous fiscal.

It will spend around Rs 300-350 crore on capital expenditure in the current year, of the total of Rs 1,000 crore that it had planned. All of these spends will be done from the company’s internal accruals.

It had a debt of Rs 871.20 crore as on March 2023, which it managed to bring down to Rs 398.10 crore by March 2024. The company had a net debt to operating profit ratio of 0.4 times, and plans to become debt-free in 15 months.

The company, which has been loss-making since at least 2013-14 (Apr-Mar), turned green in 2021-22 (Apr-Mar), and has posted a profit for the third consecutive year now.

  • Published On Jul 19, 2024 at 08:19 AM IST

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